Question

Use only the following account names:

Automobiles

Computer Equipment

Furniture and Fixtures

Equipment  

Leasehold Improvements

Other Current Assets

Intangible Assets

Research and Development Expense

Operating Expenses

·      Record all types of current assets in the summary "other current assets" account

·      Record all types of intangible assets in the summary "intangible assets" account

·      Record all types of operating expenses in summary "operating expenses" account

1) Tables and Chairs for Break Room

2) 2 Years Contract for Research & Development

3) Appliances for Employee Break room $1,728.13 + delivery

4) Computer Equipment (Installed 1/12/2017)

5) Accounting and Inventory Software $1,750 + Installation

6) Used 1 yr old Copy Machine (Sales tax $375.64)

7) Trademark Filing

8) Design of Trademark

9) Annual maintenance on copy machine

10) 2016 Toyota Camry down payment

11) Notes Payable to finance the Camry

12) 6 Office Chairs with Back Support

13) Paint and Remodel Rented Building

14) Warehouse Racks (Installed 4/5/2017)

15) Potential Customer List

16) Warehouse Packing Tables: Installed May 2

17) Season Football Tickets

18) Customer Mailings / Brochures

19) Legal Retainer Fee (July 1 to Dec 31, 2017)

20) Marketing Booth used at conventions

21) New Tires for Camry

22) Service and Oil Change on Camry

Answer 1

Particular	Account Name	Summary Account	Remark
1) Tables and Chairs for Break Room	Furniture and fixtures	Fixed assets	-
2) 2 Years Contract for Research & Development	Research and development expenses	Operating expenses	Amount of R&D can be capitalized only after condition is meet as per applicable IAS here is assumed that condition for the same is not meet hence expensed off in P/L.
3) Appliances for Employee Break room $1,728.13 + delivery	Furniture and fixtures	Fixed assets	Delivery charges become part of appliance as it necessary to bring asset at present location and condition
4) Computer Equipment (Installed 1/12/2017)	Computer equipment	Fixed assets
5) Accounting and Inventory Software $1,750 + Installation	Intangible assets	Intangible assets	Installation charges become part of software as it necessary to bring asset at present location and condition
6) Used 1 yr old Copy Machine (Sales tax $375.64)	Equipment	Fixed assets	Sales tax can become part of machine only if credit of the same is not allowed.
7) Trademark Filing	Operating expenses	Operating expenses
8) Design of Trademark	Intangible assets	Intangible assets
9) Annual maintenance on copy machine	Operating expenses	Operating expenses
10) 2016 Toyota Camry down payment	Automobiles	Automobiles
11) Notes Payable to finance the Camry	Other current assets	Other current assets
12) 6 Office Chairs with Back Support	Furniture and fixtures	Fixed assets
13) Paint and Remodel Rented Building	Operating expenses	Operating expenses
14) Warehouse Racks (Installed 4/5/2017)	Furniture and fixtures	Fixed assets
15) Potential Customer List	NA	NA	Self generated customer list cannot be classified as intangibles assets but if customer list is purchased from outside the same can be recognized as intangible asset as cost of the same can be reliably measured.
16) Warehouse Packing Tables: Installed May 2	Furniture and fixtures	Fixed assets
17) Season Football Tickets	Operating expenses	Operating expenses
18) Customer Mailings / Brochures	Operating expenses	Operating expenses
19) Legal Retainer Fee (July 1 to Dec 31, 2017)	Operating expenses	Operating expenses
20) Marketing Booth used at conventions	Operating expenses	Operating expenses
21) New Tires for Camry	Automobiles	Fixed assets
22) Service and Oil Change on Camry	Operating expenses	Operating expenses